Correlation Between The Hartford and Tiaa-cref Small-cap

Can any of the company-specific risk be diversified away by investing in both The Hartford and Tiaa-cref Small-cap at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining The Hartford and Tiaa-cref Small-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Hartford International and Tiaa Cref Small Cap Equity, you can compare the effects of market volatilities on The Hartford and Tiaa-cref Small-cap and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in The Hartford with a short position of Tiaa-cref Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Tiaa-cref Small-cap.

Diversification Opportunities for The Hartford and Tiaa-cref Small-cap

-0.22

Correlation Coefficient

The Hartford  Tiaa-cref Small-cap

Very good diversification

The 3 months correlation between The and Tiaa-cref is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford International and Tiaa Cref Small Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Small-cap and The Hartford is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Hartford International are associated (or correlated) with Tiaa-cref Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref Small-cap has no effect on the direction of The Hartford i.e., The Hartford and Tiaa-cref Small-cap go up and down completely randomly.

Pair Corralation between The Hartford and Tiaa-cref Small-cap

Assuming the 90 days horizon The Hartford International is expected to generate 0.66 times more return on investment than Tiaa-cref Small-cap. However, The Hartford International is 1.51 times less risky than Tiaa-cref Small-cap. It trades about 0.34 of its potential returns per unit of risk. Tiaa Cref Small Cap Equity is currently generating about -0.1 per unit of risk. If you would invest  1,795  in The Hartford International on December 19, 2024 and sell it today you would earn a total of  318.00  from holding The Hartford International or generate 17.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

The Hartford International  vs.  Tiaa Cref Small Cap Equity

Hartford Interna

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford International are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, The Hartford showed solid returns over the last few months and may actually be approaching a breakup point.

Tiaa-cref Small-cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tiaa Cref Small Cap Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with The Hartford and Tiaa-cref Small-cap

The main advantage of trading using opposite The Hartford and Tiaa-cref Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Tiaa-cref Small-cap can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tiaa-cref Small-cap will offset losses from the drop in Tiaa-cref Small-cap's long position.

The idea behind The Hartford International and Tiaa Cref Small Cap Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.